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The loss is nearly 4 billion dollars! General Motors and Ford lay off staff

2024-06-17 Update From: AutoBeta autobeta NAV: AutoBeta > News >


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The United Auto Workers (UAW) strike, which broke out on September 15, is still ongoing. Ford Motor Company will temporarily lay off 330 employees in Chicago and Ohio on October 3, affected by the strike of the United Auto Workers, foreign media reported. Also affected by the strike, GM said it would lay off another 160 workers in Ohio and Indiana due to the strike's impact on some facilities.



GM and Ford had not responded to the news as of press time.

It is understood that the National Union of Auto Workers is one of the largest workers 'associations in the United States. The UAW re-signs its contract with Detroit's "three auto giants"-General Motors, Ford and Stellantis every four years. The contract between union employees and Detroit's three auto giants expires on September 14. The union demands that the three auto giants raise wages, pensions, medical care, unemployment and other guarantees to cope with the cost of living crisis brought about by high inflation in the United States, including a 40% pay rise and a four-day working week. However, due to the deadline, the UAW and the "Big Three" failed to negotiate a labor agreement, which eventually led to a large-scale strike action.


On September 15, the UAW launched a strike against the three auto giants. This is the first time in more than 80 years since the founding of the United Auto Workers that auto workers have staged strikes against Detroit's "Big Three" at the same time, thus triggering a social shock in the United States. Since then, the UAW has announced that it will extend the strike against the Detroit automaker's assembly plant to 38 additional parts and distribution locations for General Motors and Stellantis. In contrast to previous strikes, UAW leaders chose to conduct targeted strikes at selected factories rather than launching a nationwide strike.


Two days ago, the UAW said it would strike its Lansing Delta assembly plant in Michigan, which makes Chevrolet Traverse and Buick Enclave, following strikes at GM's Missouri assembly plant and 18 parts distribution centers. On Sept. 16, Ford Motor said it had temporarily laid off about 600 workers at an auto plant in Michigan because of the strike. On Sept. 20, GM said it had to close an assembly plant in Kansas and lay off 2000 employees because of a parts shortage caused by the strike.

Tesla CEO Elon Musk also defended the Detroit Three on Sept. 27, saying the UAW's demands-a 40 percent pay rise and a 32-hour work week-would "push GM, Ford and Chrysler on the fast track to bankruptcy."


On September 29, UAW Chairman Finn said the strike would be further expanded as contract negotiations between the union and Ford and GM remained divided, involving Ford's Explorer plant in Chicago and GM's Chevrolet Traverse plant in Lansing, Michigan, with about 7000 workers involved in the new target strike plant. Hours after the union escalated its strike, the CEOs of General Motors and Ford also attacked the UAW, although the latter responded on social media that neither CEO was involved in negotiations.


It is reported that the number of American auto workers involved in the strike has reached about 25,000 and has caused nearly 4 billion US dollars in damage. The latest report from Anderson Economics Group, a US consulting firm, shows that the decline in production volume of US auto companies during the strike, combined with additional costs for suppliers, dealers and consumers, has caused nearly $4 billion in losses over the past two weeks. Some U.S. economists warn that a strike lasting a month or more could affect U.S. gross domestic product and increase the risk of recession.

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